Poverty is spreading
Tanzania is among the worlds least developed countries, ranking 128th out of a total of 169 countries in the 2010 human development index.
[3] Real Gross Domestic Product (GDP) grew by 6.0% in 2009 compared to 7.4% in 2008, a slowdown attributed by the Government to the impact of the global financial crisis as well as the 200809 drought, which affected agricultural production, hydro power generation and industrial production.
[4] Moreover, although agriculture employs a huge number of people in Tanzania, for at least six years no more than 7% of the entire national budget has been allocated for that purpose. According to the 2007 House Budget Survey, about 33.6% of mainland Tanzanians live below the basic needs poverty line, while 16.6% live below the food poverty line.
[5] The number of poor people has increased in recent years by 1.3 million,
[6] and the rate of unemployment is rising: about 11.7 million people who are able to work are unemployed.
[7] Moreover, the gap between the poor and the rich is getting wider.
[8]
Although Tanzania has legislation on investment issues, there are a number of problems relating to foreign direct investment. This is the case, for example, with the signing of dubious mining contracts (e.g., Buzwagi, Richmond and Dowans, and IPTL) between the Government and foreign investors.
[9] Also, land grabbing by State bodies in favour of foreign investors is on the rise. The open door policy of the Tanzania Investment Centre (TIC), which is committed to attracting foreign investors, has been detrimental to local people. Small and medium-sized enterprises are unable to compete because they do not have enough capital and business expertise, while villagers are forcefully evicted to make room for foreign enterprises.
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Stuck in poverty | Social Watch
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